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Activity Availability, Capacity Used, Unused Capacity Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid $80,000 per
Activity Availability, Capacity Used, Unused Capacity Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid $80,000 per year and is able to process 8,000 purchase orders. Last year, 35,600 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. per purchase order 2. Calculate, in terms of purchase orders, the: a. Total activity availability b. Unused capacity 3. Calculate the dollar cost of a. Total activity availability b. Unused capacity purchase orders purchase orders
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